BHP Q1 Copper Surge to Become New Pillar; Maintains Outlook Amid Strong Commodity Demand

TradingKey - BHP Group, the world's largest miner, reported a substantial increase in copper production in its fiscal Q1 2026 report, while iron ore output remained relatively stable. The company has reaffirmed its full-year guidance, citing sustained strong demand for commodities and upward revisions in global economic growth forecasts, according to CEO Mike Henry.

BHP's US shares (BHP) closed up 2.18% on Monday, while Australian shares closed up 2.29% on Tuesday.

Q1 is typically a seasonally weak period for BHP due to maintenance activities. The report showed that Q1 iron ore production fell by 0.1% year-on-year to 64.1 million tonnes, but the full-year output forecast remains unchanged at 258-269 million tonnes.

Previously, there were reports of a pricing dispute between BHP and China Mineral Resources Group over iron ore, with the latter urging domestic buyers to pause purchases from BHP. However, as reported by Bloomberg, BHP's iron ore exports to China have so far been largely unaffected, with most of the November-December quota already sold out.

On the copper front, BHP's Q1 copper production exceeded expectations, rising 4% to 493,600 tonnes, driven primarily by increased output from the massive Escondida project in Chile. The company maintains its copper production forecast for 2026.

Despite iron ore still contributing over half of its earnings, BHP is rebalancing its portfolio with a greater focus on copper investments.

Copper plays a critical role in renewable energy and data infrastructure, and BHP projects global copper demand will soar by 70% by 2050. Major mining companies are ramping up investments in copper.

Over the past year, BHP has become the world's largest copper producer, with an annual output of approximately 2 million tonnes, and has increased production from its existing mines in Chile and Australia.

Henry noted that significant disruptions at some competing mines have tightened overall market fundamentals to the benefit of BHP's asset portfolio.